Asked by Natalia Smart on Apr 25, 2024
Alpha Company has current assets of $74,524, total assets of $203,310, total net income of $67,913, current liabilities of $60,100, and total liabilities of $150,600.
What is Alpha Company's current ratio?
Current Ratio
A liquidity ratio that measures a company's ability to pay short-term and long-term obligations, calculated as current assets divided by current liabilities.
Current Assets
Resources owned by a company that are expected to be converted into cash, sold, or consumed within a year or within the operating cycle of the business.
Total Liabilities
The aggregate of all debts and financial obligations a company owes to outside parties.
- Determine the effect of accounting entries on the company's financial ratios.
Learning Objectives
- Determine the effect of accounting entries on the company's financial ratios.